One-glance verdict
Undervalued
$25.70 our estimate vs market $12.98
Wall Street consensus: $15.00 (-41.6% lower than our fair-value estimate)
49% below our estimate, below the bear case
Fundamentals snapshot
Shoe Station Group Inc.
SHOE · NMS · Consumer Cyclical · Apparel Retail
Current price
$12.98
52-week range
$10.20 - $24.10
Market cap
$352.85M
Balance sheet
Watch
178.98x Strong cushion
Net debt $222.96M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
2 Risks
2 rewards · 2 risks
- Reward Free cash flow was positive in 9/10 years.
- Reward Dividend yield is 5.3% with 15-year payout history.
- Risk Stock trades 61.5% above its 5-year average P/E.
- Risk Operating margin compressed from 11.6% to 2.7% over 3 years.
What this company does
Shoe Station Group Inc.
Shoe Station Group is a retail company that sells a wide variety of shoes and accessories for the whole family through its physical stores and online. The company makes money from these direct sales to customers, so its success depends on attracting shoppers and efficiently managing its supply chain (the entire process of getting shoes from the factory to the store shelves). This matters because strong sales and well-managed costs can lead to higher profits for the company.
How the company got here
The company started in 1978 as a single shoe store in Indiana called Shoe Biz, founded by David Russell. It grew into a small chain and was later bought by shoe industry executives who rebranded it as Shoe Carnival, creating a fun, energetic shopping atmosphere with music and promotions. The company became publicly traded in 1993, which provided the capital (money raised to grow a business) to expand across the country. More recently, it began acquiring other shoe store chains, including Shoe Station in 2021 and Rogan's Shoes in 2024, to serve a wider range of customers. This led to a major strategic shift, and in June 2026, the parent company officially changed its name from Shoe Carnival, Inc. to Shoe Station Group Inc.
What it actually does
Shoe Station Group is a retailer that sells shoes and accessories for the whole family. You can find their stores in many parts of the United States and Puerto Rico, and they also sell their products online through websites and a mobile app. They offer a wide variety of footwear, from athletic sneakers and casual sandals to dress shoes and work boots, carrying many well-known national brands. In addition to shoes, their stores also sell accessories like socks, handbags, and shoe care items.
Shoe Station
This is the company's main focus for future growth and is expected to make up over 90% of its stores by 2028. Shoe Station stores are designed to be a one-stop shop for family footwear, targeting customers in suburban areas. This part of the business aims to serve a slightly broader customer base than the original Shoe Carnival stores. The company is actively opening new Shoe Station locations and converting many of its other stores into this format.
Shoe Carnival
This is the original and well-known part of the business, famous for its lively, carnival-like store environment. These stores use music and microphone announcements for special, limited-time deals to create an exciting and urgent buying atmosphere. While the company is shifting its overall focus to the Shoe Station brand, it will continue to operate Shoe Carnival stores in markets where that format has proven to be very strong and has a loyal customer base.
E-commerce
This segment represents the company's online sales through its websites, shoestation.com and shoecarnival.com. It allows customers to shop for the company's full range of shoes and accessories from anywhere, extending its reach beyond its physical store locations. This online business works together with the physical stores; for example, a program called Shoes2U allows shoppers to get shoes delivered to their home from any store in the chain if their local one doesn't have the right size or style. This combination of online and in-store shopping is a key part of how the company serves its customers today.
What management is betting on now
The company's main strategy is to grow by focusing on its Shoe Station brand, which it sees as the primary vehicle for long-term expansion. This involves opening new Shoe Station stores and closing underperforming locations, while also pausing the conversion of stores to focus on improving product selection. Management is also focused on making smart acquisitions (buying other companies) to enter new markets and expand its customer base. They are also working on carefully managing their inventory (the products they have on hand to sell) to better match local customer tastes and reduce the need for heavy discounts.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q4
$8.29M
FY2026 Q1
$36.17M
FY2026 Q2
$-22.98M
FY2026 Q3
$2.20M
FY2026 Q4
$19.71M
FY2027 Q2
$12.64M
FY2027 Q3
$6.53M
Revenue
$284.31M
Net income
$6.26M
Diluted EPS
0.23
Operating cash flow
$11.05M
Free cash flow
$6.53M
Fetching…
Sources
Revenue
$270.73M
Net income
$-5.63M
Diluted EPS
-0.21
Operating cash flow
$23.08M
Free cash flow
$12.64M
Fetching…
Sources
Revenue
$297.15M
Net income
$14.65M
Diluted EPS
0.53
Operating cash flow
$33.64M
Free cash flow
$19.71M
Fetching…
Sources
Revenue
$306.39M
Net income
$19.23M
Diluted EPS
0.70
Operating cash flow
$13.26M
Free cash flow
$2.20M
Fetching…
Sources
Revenue
$277.71M
Net income
$9.34M
Diluted EPS
0.34
Operating cash flow
$-9.64M
Free cash flow
$-22.98M
Fetching…
Sources
Revenue
$262.94M
Net income
$14.66M
Diluted EPS
0.53
Operating cash flow
$44.55M
Free cash flow
$36.17M
Fetching…
Sources
Revenue
$306.88M
Net income
$19.24M
Diluted EPS
0.70
Operating cash flow
$17.35M
Free cash flow
$8.29M
Fetching…
Sources
Is it cheap or expensive?
Fair value $25.70 vs current price $12.98
Wall Street consensus is the average analyst price target: $15.00 (-41.6% lower than our fair-value estimate).
Our most-likely fair value is $25.70 a share — about 98.0% above today's price of $12.98, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Watch
Net debt $223.0M. Interest coverage 179.0x.
Net debt
$222.96M
Interest coverage
178.98x
Shoe Station Group Inc.'s profit covers its interest bill about 179.0 times over. which is stronger than every peer shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Watch
Worse cushion
Baseline
Better cushion
SHOE
BASELINE
Shoe Station Group Inc.
Total debt $354.60M Interest coverage 178.98x This is the baseline the peer rows are being compared against.
Total debt $1.21B Interest coverage 0.91x -99% vs SHOE Carries about 197.2x less debt cushion than SHOE.
Total debt $583.91M Interest coverage 5.29x -97% vs SHOE Carries about 33.8x less debt cushion than SHOE.
Total debt $877.31M Interest coverage 1.48x -99% vs SHOE Carries about 121.2x less debt cushion than SHOE.
Total debt $130.01M Interest coverage 3.72x -98% vs SHOE Carries about 48.2x less debt cushion than SHOE.
What you should know
The case for and against SHOE
2 Rewards
2 Risks
Rewards
-
Free cash flow was positive in 9/10 years.
-
Dividend yield is 5.3% with 15-year payout history.
Risks
-
Stock trades 61.5% above its 5-year average P/E.
-
Operating margin compressed from 11.6% to 2.7% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
14.75x
Forward P/E
9.03x
P/B
0.52x
P/S
0.32x
EV/EBITDA
7.46x
PEG ratio
0.95x
Profitability
How much profit each dollar creates
Gross margin
34.5%
Operating margin
2.7%
Net margin
2.2%
ROE
3.6%
ROA
2.4%
Health
Liquidity and balance-sheet strength
Debt / equity
0.52x
Current ratio
4.04x
Quick ratio
0.94x
Total debt
$354.60M
Total cash
$131.64M
Growth
How the business has been compounding
Revenue TTM
$1.11B
Revenue 5Y CAGR
-3.9%
EPS TTM
0.88
EPS 5Y CAGR
-21.7%
Cash flow
How much cash the business throws off
Operating CF TTM
$101.81M
Free CF TTM
$26.58M
FCF margin
2.4%
Dividend
Shareholder payout
Yield
5.3%
Payout ratio
72.7%
Last ex-div date
2026-07-06